Hobbs
11-17-2006, 03:50 PM
Nov. 17 (Bloomberg) -- Housing starts in the U.S. tumbled in October to the lowest level in more than six years, as waning home sales and swollen inventories discouraged new projects.
Builders broke ground on new dwellings at an annual rate of 1.486 million, down 14.6 percent from September, the Commerce Department said today in Washington. Building permits dropped to a 1.535 million pace, a record ninth straight decline and the lowest since December 1997.
The bigger-than-expected drop suggests home construction may continue to sap economic growth into the fourth quarter. Federal Reserve Bank of St. Louis President William Poole this week said policy makers are paying ``special attention'' to housing, and that he is concerned about the number of would-be purchases being canceled.
``This is a shocking number,'' said Phillip Neuhart, an economist at Wachovia Corp. in Charlotte, North Carolina. ``The market is going to remain weak well into next year.''
Builders broke ground on new dwellings at an annual rate of 1.486 million, down 14.6 percent from September, the Commerce Department said today in Washington. Building permits dropped to a 1.535 million pace, a record ninth straight decline and the lowest since December 1997.
The bigger-than-expected drop suggests home construction may continue to sap economic growth into the fourth quarter. Federal Reserve Bank of St. Louis President William Poole this week said policy makers are paying ``special attention'' to housing, and that he is concerned about the number of would-be purchases being canceled.
``This is a shocking number,'' said Phillip Neuhart, an economist at Wachovia Corp. in Charlotte, North Carolina. ``The market is going to remain weak well into next year.''